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Contract deposits are almost never forfeited without a fight, especially considering that the contract deposit is typically 10% of the contract purchase price, which can be easily six figures in NYC.
If a buyer defaults on a contract, the seller's attorney will typically notify all parties that the buyer is in default of the contract and will ask for the escrow agent to release the buyer's deposit to the seller. Almost all buyers will fight this.
What will typically happen is that the buyer will reply all and say that they dispute the fact that they are in default or simply object to the escrow agent about the turn of events. As long as there is an objection, the escrow agent cannot just give the money to the seller.
What this means is then they are in litigation, and what typically happens is the parties end up settling on something. As the saying among lawyers goes, a good settlement is where neither party walks away happy!
P.S. Typically the seller will re-market the apartment as soon as it becomes clear that the buyer won't be able to consummate transaction. If for some reason the buyer tries to interfere with this (i.e. try to put a lien somehow on the apartment), then the seller can litigate against the buyer for punitive damages (i.e. more than the contract deposit)!
If a buyer defaults on a contract, the seller's attorney will typically notify all parties that the buyer is in default of the contract and will ask for the escrow agent to release the buyer's deposit to the seller. Almost all buyers will fight this.
What will typically happen is that the buyer will reply all and say that they dispute the fact that they are in default or simply object to the escrow agent about the turn of events. As long as there is an objection, the escrow agent cannot just give the money to the seller.
What this means is then they are in litigation, and what typically happens is the parties end up settling on something. As the saying among lawyers goes, a good settlement is where neither party walks away happy!
P.S. Typically the seller will re-market the apartment as soon as it becomes clear that the buyer won't be able to consummate transaction. If for some reason the buyer tries to interfere with this (i.e. try to put a lien somehow on the apartment), then the seller can litigate against the buyer for punitive damages (i.e. more than the contract deposit)!